Carrie Owns a Business Building with an Adjusted Basis of $95,000

question 22

Multiple Choice

Carrie owns a business building with an adjusted basis of $95,000 and an appraised fair market value of $98,000. The city of Millerville condemns the property for a new highway. The condemnation award is $98,000. Carrie invests $90,000 of the proceeds into a new building on the other side of the city. What is the gain or loss that Carrie must recognize due to the transactions?

• A)No gain or loss
• B)$3,000 gain
• C)$3,000 loss
• D)$8,000 gain
• E)$5,000 loss

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Definitions:

Human Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual.

Scientific Methods

Systematic processes for experimentation and observation used to gather empirical evidence and establish or validate theories and principles.

Possible Selves

Cognitive representations of the kind of people we think we might become some day.

Construe the World

To construe the world means to interpret or understand the world and the events within it through a personal or theoretical lens.